December 03, 2008
Yilgarn secures AUD 750 million funding from 5 Chinese firms
Yilgarn Infrastructure Limited has signed an investment agreement with five major Chinese enterprises to underpin the AUD 750 million equity needed for the development of the Oakajee Port and Rail Project in Western Australia's Mid West region. The equity deal follows a commitment by China's EXIM Bank to underwrite the debt required for the project.
Dr John Saunders chairman of Yilgarn said that a crucial component of the agreement was a local content commitment by all parties to partner with Australian expertise and suppliers for the development, construction and operation of the estimated AUD 3 billion infrastructure project.
Dr Saunders added that "Yilgarn is forging a highly skilled and competent project team by combining Australian expertise and local inputs with Chinese project execution capabilities. Ensuring these commercial partnerships continue to be created and fostered into the construction and delivery phases of the port and rail will ensure the Mid West and Western Australia receives the best possible infrastructure development.”
Dr Saunders said that “This equity agreement, together with the debt finance commitment secured from China's EXIM Bank, puts Yilgarn on the best possible financial footing as we progress the Oakajee Port and Rail Project. With substantial preliminary works done, including engineering pre feasibility, key environmental investigations and specialized geo technical, rail alignment and vessel handling studies, Yilgarn is now moving onto definitive feasibility studies with a strong team well equipped to handle this extremely complex development."
Mr Bryan Oliver CEO of Midwest said “It signals the strategic interest of major Chinese companies in iron ore in WA and the growing cooperation between Chinese and Australian companies. Today's announcement also confirms China's appetite for investment opportunities in WA."
Midwest Corporation Limited and Yilgarn are parties to an Implementation Agreement to work together to progress the development of the port and rail infrastructure.
The group of five Chinese companies, with combined assets of more than USD 50 billion and revenues of more than USD 60 billion, includes some of China's biggest enterprises in the fields of port and railway construction; railway operations, iron ore trading and steel production.
